1.Consider the monetary intertemporal model as discussed in the course. There is no inflation. Suppose that the price of oil, an important input in production, doubles. Now suppose that nominal wages are sticky. Initially, the economy is at full employment.

a) Derive the effect of the oil price shock in the Keynesian framework.

b) What should the central bank do if its objective is to stabilize prices and what should it do if its objective is to speed up the adjustment of employment to its long run level?

(Note to expert: Please answer both a and b as they are both part of the same question, thanks!)

1. To produce ice cream cones, Marcus requires capital K and labour L. Neither by itself produces good ice cream cones. Suppose that the production technology can be captured by the production function q=20L^0.5K^0.5, where q is number of traps, MP_L = 10L^-0.5K^0.5, and MP_K =10 L^0.5K^-0.5.
   1. What can you say about the returns to scale for this production function?
   2. What is the equation of the isoquants?
   3. What is the equation for a slope of an isoquant? What is this called? What does it indicate?
   4. Set up the cost minimization problem and solve for the conditional capital and labour demands as functions of w (the labour costs), r (the capital costs), and q (number of ice cream cones).
   5. What is the equation of the expansion path? Discuss your findings.
   6. Discuss the demand functions you derived in d). Are production inputs the normal inputs? What happens to optimal amount labour as w increases? What happens to optimal amount of capital as r decreases?
   7. Now, assume that the cost of the labour is $10 while cost of capital is $40. What is your “optimal production plan”?
   8. Derive the cost function and simplify the function as much as you can.
   9. What is your “optimal production plan” if you wish to produce 100 ice cream cones?
   10. What is the cost of producing 100 ice cream cones?

Now suppose your investor fixes capital to 10 units in short run.

11. What is your “optimal production plan” with fixed capital if you wish to produce 100 ice cream cones?
    12. What is the short-run cost function?

Imperfect information is pretty common. Many people who got caught up in variable interest mortgages claimed not to know the interest rates would go up after a few years. Many people have been defrauded in Ponzi schemes. Not too long ago a poor elderly lady was discovered to still be paying $3.00 a month to rent her phone from AT&T, something that was done way back in the 70s and before, when you could not own your own telephone. One recent scam that has surfaced are people calling to help unknowing suspects to sign up for Obama Care and getting payments, which is stolen money. Another is people calling and claiming the person missed jury duty and demanding money to pay off a fine. Do you know anyone that has been defrauded or suffered simply because they did not know what they were doing? Discuss.

Assume you have the utility function U( X; Y ) = XY: You have 20 liras to spend. Price of good X is a lira per unit and price of good Y is a lira per unit. Given this information, you can solve for optimal consumption bundle and conclude that consuming 10 units of X and 10 units of Y maximizes your utility. Now assume that price of X increases to 2 liras. Price of good Y is constant and your income is still 20 liras. Now,the new optimal consumption bundle is 10 units of Y and 5 units of X. We observe that good X consumption declines from 10 to 5. This is what we call as total e§ect. Decompose the decline in X consumption into income e§ect and substitution e§ect. Decompose numerically. Explain your answer using a graph as well. (I want you to be able to say for example " the decline in X consumption is 5 units. 2 units is due to substitution e§ect and 3 units is due to income e§ect )

How could I answer the following discussion question? Thanks!

Higher education has become increasingly expensive and hence education now costs much more than it did before. One of the ways the government controls prices is by setting a floor or a ceiling on the market.

Explain what might happen in the market for higher education if the government placed a price ceiling on the cost of one undergraduate credit hour. Explain your answers using economic theory on impacts of price ceiling on market equilibrium.

1. What are the impacts of pricing ceiling market equilibrium in education market?
2. Does it matter whether or not the ceiling is set above or below the equilibrium price?
3. Who might benefit from this price restriction? Who might be harmed from this price restriction?

Compare the situation of 2 farmers, one who owns his land and the other who rents it from a landlord. In good times (which happen with a probability of 1/2), the owner-farmer earns an income of 125. In bad times (also with probability 1/2), he earns an income of 75. The tenant works on a farm that is twice as large and earns an income of 250 in good times and 150 in bad times (both with probability 1/2). However, he must pay rent of 100. Calculate the expected net income of both farmers. Assume their utility function takes the following form: U = y(1/2) where y stands for the farmers net income. Calculate the expected utility of both. Compare this result to the calculation of expected income. What do you conclude in terms of the different risks that farmers face?

1. The research department of Cardinal Novelties has estimated the demand function facing the firm for price increases and price declines from the prevailing price are, respectively: Q = 220 -10P and Q’ = 145-5P

The marginal and average total cost functions of the firm were also estimated to be, respectively: MC =2.5 + .05Q and ATC = 2.5 + .025Q

Determine the best level of output of the firm, the price at which the firm sells its output, as well as the total profit. (20 points)

• Reference Figure 6, p. 432,  This is a kinked demand problem.  The kinked demand model is an oligopoly model to explain a feature, common to many oligopolies, a reluctant to change the price.  You are attempting to determine whether the firm is maximizing profits at the price and quantity coordinates where it is, currently.  You first determine what those coordinates are and then find whether the marginal cost at the current quantity is between the marginal revenues of the two demand curves at the current quantity.  If it is then the firm is maximizing profits, if not then you fall back on the MR=MC rule (use the higher MR if MC is above the range and the lower MR if MC is below the range).  If you approach this problem by first equating MC to MR, you will get it wrong and will not likely receive any of the 20 points associated with the problem.
• You are trying to determine whether the MC goes through the gap in the MR

1. Find kink price and quantity (where two demand curves intersect)
2. Find the MC by plugging in the Q you found in part a.
3. There two marginal revenues, one associated with each demand
4. You must find MR equations for both -   Find both reverse demand curves, Double slope of each to get MR equation
5. Plug in Q from part a into each MR
6. Is the MC between the two MR’s?  If it is then they maximize profit at the kink (current P and Q).  If not, equate MR and MC (if MC is about the larger MR use that MR, if MC is below the lower MR use that MR).  

Which Economic Model best describes and analyzes this article?

‘NO EXCESSIVE BARKING’: A Chevy Chase dog park divides the rich and powerful

A sign that reads “NO EXCESSIVE BARKING’ sits behind Chubbs, right, and Louie, left, a French bulldog who is the unofficial mayor of the dog park. (Bill O’Leary/The Washington Post) By Jessica Contrera August 28, 2019 at 7:00 a.m. EDT Everyone knows there’s a problem with Chubbs. Dirt is smeared across his face. His tongue is rolling out of his mouth. He’s surrounded by signs that say “NO EXCESSIVE BARKING.” But the 5-month-old golden retriever does not know how to read. At a dog park in one of Maryland’s wealthiest suburbs, he spends this sunny August morning rolling on his back. He opens his mouth, and then, he does it. He woofs. Twice. “CHUBBS!” four humans around him yell, trying to stop him from doing what dogs do — just not in Chevy Chase Village this summer. Here in this community of the rich and powerful, where the average household income is $460,000, barking is the subject of a ferocious (fur-ocious?) debate — one that has divided the two-legged one-percenters for nearly a year. The drama began last fall when the village spent $134,000 to turn a muddy triangle of land into a park where pups could run off-leash in a fenced refuge. Chase tennis balls. Sniff one another’s butts. But after about a month, signs decrying the barking of those dogs began appearing around the park. The village police started receiving almost daily calls about the noise, mostly from one particular neighbor whose house backs up to the park. By spring, the tension had escalated so much that the Chevy Chase Village Board of Managers called a public hearing. Then another in June. And another in July.
At the center of it all is Elissa Leonard, chair of the village board and wife to Jerome H. Powell, who is also a chair — of the Federal Reserve. In recent months, her husband has been under attack from President Trump, who appointed him but blames him for the tanking stock market. “My only question is, who is our bigger enemy, Jay Powell or Chairman Xi?” the president tweeted Friday. Leonard, meanwhile, is on the receiving end of a different siege: from village residents who say their peace and quiet has been disturbed by barking dogs. “Around dinner time, I’d like to be able to sit on my deck and maybe read a book and chat with a friend or have a glass of wine, and the dogs are barking,” Joanie Edwards, the neighbor who had been calling police, testified at the meeting in May. “As residents of Chevy Chase, how many times is it acceptable for you to be bothered in your house every day?” Tom Bourke, a real estate developer whose house sits across the street from the park, asked in June. “You’ve created a nuisance.” The park regulars, he acknowledged, were trying to hush their hounds. He heard that they were ostracizing the yappiest dogs, including, he told the board, “a certain standard poodle whose name should be withheld.” “But there are people,” chimed in Bourke’s wife, Dale, “and I don’t mean to characterize the District, but I just notice that they have District plates on their cars, and they have very little regard for us or our property . . . there are dogs barking and they’re just not doing anything.” “I hear you,” Leonard said again and again, with the patience of a dog trainer. She explained to the residents that no, they could not restrict access just to dogs from the immediate neighborhood (where the houses for sale currently range in price from $1.1 million to $22.5 million). The village purchased this 15,000-square-foot parcel of land in the 1980s, in part, using state money, so it had to remain open to the public. For years, it had been a favorite spot of local dog owners, so when the village wanted to update its parks, a dog park just made sense. Neighbors voiced their support. A unanimous vote followed. But now the park was somehow both a wild canine circus sabotaging property values and a beloved gathering space for only the politest of pooches. Leonard, whose Norwich terrier, Pippa, does not frequent the park, tried to make both sides happy. To limit barking in the early hours, the board changed the opening time from 7 to 8 a.m. To stop outsiders from driving to Chevy Chase Village and parking on the Bourkes’ street — taking the spots where the family liked their lawn maintenance service to park — the dog park was wiped from the village website. To determine the extent of the barking and the parking, the board paid $1,300 for a woman with a graduate degree in epidemiology to spend weeks studying the behavior of the dogs and their humans. During 54 visits, the researcher witnessed seven dog owners who drove to the park instead of walking. “One of these people,” she testified in June, “did allow his dog to relieve himself on the green space next to the street.” But on the barking, no conclusion was reached. What was minimal to some was enough for Edwards to call the police, exasperated that she had to turn on music inside her home so she didn’t have to hear the dogs. She doesn’t want to be the bad guy, she said in an interview. But as a retired elementary school teacher, she now spends her days at home painting. She does landscapes from her travels and portraits of people, vibrant creations so popular in her circle that friends and strangers have also commissioned her
to paint their most beloved companions: their pets. She and her husband, a lawyer, used to have dogs of their own. Her last, a black lab named Zoe, died four years ago. “People in the community keep saying, ‘She should get another dog, if she had a dog, it would be different,’ ” Edwards said. “Well, first of all, I am a very considerate person, and if I had a dog, and he was barking in my back yard, I would bring him in. If my children were in a restaurant crying, I would take them out.” The fence, she says, should come down, so the dog park is just a park. At a public hearing on Sept. 9, Leonard and the board may decide to do just that. The dog lovers are planning to crowd the hearing, have organized a letter-writing campaign and started a Facebook group, Save the Chevy Chase Dog Park, with more than 100 likes. “What are they going to do next, ban dancing?” asked Pat Murphy, the group’s moderator. Murphy, who lives in a nearby section of Chevy Chase, says he literally does “not have a dog in this fight.” He does not own a dog. He used to take his son’s miniature Australian shepherd to the park, but his son moved away this summer. Now he sometimes walks alone to the park, where every morning, the conversation returns to the handful of complaining neighbors. “They should be put in jail,” said Doug Gansler, a former Maryland attorney general and an unsuccessful gubernatorial candidate, while his King Charles spaniel, Jack, searched for a new dog to hump. “Doug!” scolded Patty Martin, mother to the park’s unofficial mayor, a French bulldog named Louie, and wife to the head of gastroenterology at Washington Hospital Center. She, too, thought the complainers were being selfish. “Where’s the democratic process?” Martin asked in an interview last week. “Why is the 1 percent deciding for the 99 percent?” “This is not verified,” she continued, “But we have heard through reliable sources that this woman has threatened a lawsuit against the village over the park. Well, many dog park users are lawyers, too, so we’re wondering, should we get a lawyer? Do we have grounds to sue?” While lawyers consulted lawyers, her husband contacted media outlets. Eventually, the story made its way to this reporter, and to her recently adopted mutt, who visited the park in hopes of sniffing out what was really going on. Despite their owners’ fretting, Chubbs, Jack, Louie and all the other dogs appear unaware that their joyful morning romp has caused such a kerfuffle. The aforementioned “standard poodle whose name should be withheld” did not make an appearance. After this reporter’s dog spent some time digging (for the truth, we presume), he was asked what he thought of the park. He woofed. Twice. The police did not arrive.

If expectations about the future course of the economy don't change at all, then a large increase in wealth will generally:

Question 34 options:

If purchasing power parity holds between Canada and the USA:

Question 37 options:

If money has intrinsic value, it has:

Question 40 options:

In Canada over the last 50 years:

Question 42 options:

During times of economic recovery, the labour force participation rate typically:

Question 44 options:

When the economy is producing at a quantity that is less than its long-run aggregate supply:

Question 48 options:

The Soviet system of central planning was very successful in which of the following ways?

A.Information technology (IT) advancements

B.Material rewards and upward mobility in their state-owned corporations

C.Markets in the allocation of land and oil

D. Space exploration

Hello, I need your support to solve below task,

First you should explain the relationship between dividends and stock prices with reference to the dividend discount model. As dividends are of two types i.e. cash dividends and stock dividends, what are the reasons for giving either type of dividends and does giving of such dividends affect the stock price? In your answer also bring in the discussion about dividend yield and dividend payout ratio. Link in your answer a discussion of profits and retained earnings with dividends. Should you buy shares of firms that pay dividends or should you buy growth stocks; are firms that pay high dividends good or those that pay low dividends – why?

Using the IS-MP model with Phillips curve, show why the Fed has limited abilities during bouts of stagflation. For this version of stagflation, assume that there's a supply shock but LaTeX: \tilde{Y}Y ~remains at LaTeX: \tilde{Y} = 0Y ~ = 0 and LaTeX: \piπ is higher after the shock.

Addressing COVID-19 is a pressing health and social concern. To date, many epidemic projections and policies addressing COVID-19 have been designed without seroprevalence1 data to inform epidemic parameters. A study published on April 11 stirred huge public/media/government interest. It measured the seroprevalence of antibodies to SARS-CoV-2, name of the virus causing COVID-19, in Santa Clara County, California.

The study found the population prevalence of SARS-CoV-2 antibodies in Santa Clara County implies that the infection is much more widespread than indicated by the number of confirmed cases. Based on different scenarios, the population prevalence of COVID-19 in Santa Clara ranged from 2.49% (with 95% CI of 1.80% - 3.17%) to 4.16% (with 95% CI of 2.58% - 5.70%). These prevalence estimates are 50 to 85 times more than the number of cases confirmed by the routine tests. Population prevalence estimates can be used to calibrate epidemic and mortality projections and more importantly can be used as criteria for reopening the economy.

Canada is facing the same pressing health and social concern and there is consensus that our confirmed COVID-19 cases are significantly underestimated due to insufficient tests. Suppose you are designated as a member of the important task force to conduct a similar study in the city of Vaughan, the particularly hard hit city by the COVID-19 outbreak in the GTA. Vaughan’s current confirmed infection rate (from the on-going insufficient tests) is 0.113%. Assume there is a consensus among epidemiologists that the confirmed infection rate of 0.113% is many folds underestimated and the true infection rate might be around 3.5%.

Elaborate on your proposal as a member of the task force. You may choose to discuss random sampling design, sample size (you have the concern of time/money cost if the sample is too big; in the meanwhile, you have the concern of the validity of the estimates if the sample is too small.), hypothesis setting, size of the test or other statistical issues you think to be important for such a medical study. For every aspect of your decision, it is important to communicate the rationale.